Financing costs for OANDA Australia

Asset class	Funding rates (Long/buy positions)	Funding rates (short/sell positions)
FX and metal CFDs (excluding copper, platinum and palladium)	Rates are based on a blend of underlying liquidity providers’ tom-next SWAP rates, adjusted by the instrument specific admin fee.On our financing costs webpage , you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates. Additionally you will also see historic funding rates.	Rates are based on a blend of underlying liquidity providers’ tom-next SWAP rates, adjusted by the instrument specific admin fee.On our financing costs webpage , you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates. Additionally you will also see historic funding rates.
Index CFDs	Rates are admin fee of 2.5% plus relevant* alternative reference rate . In the event this results in a negative rate, a charge will be levied to your account.* Please contact us via OANDA Chat if you require details of the alternative reference rate for each market. Otherwise, visit our financing costs webpage for more details. On our financing costs webpage , you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the admin fee) and anticipated daily financing cost based on prevailing rates. Additionally you will also see historic funding rates.	When the relevant* alternative reference rate is greater than our 2.5% admin fee, the rate used will be the difference between the two. This is represented by a positive rate, and therefore a credit.When the relevant* alternative reference rate is lower than our 2.5% admin fee, the rate used will be the difference between the two. This is represented by a negative rate, and therefore a charge.* Please contact us via OANDA Chat if you require details of the alternative reference rate for each market. Otherwise, visit our financing costs webpage for more details.On our financing costs webpage , you can select the instrument that you wish to trade and it will calculate both the annualised funding rate (including the admin fee) and anticipated daily financing cost based on prevailing rates. Additionally you will also see historic funding rates.
Cryptocurrency CFDs	The funding rate for long positions is -25% - SOFR	The funding rate for short positions is -25% + SOFR
Commodity CFDs and bond CFDs	Financing is calculated by applying an admin fee of 2.5%, which is deducted from the basis rate (for short positions) or added to the basis rate (for long positions). The basis rate is calculated by determining the percentage difference between the near-expiration futures contract and the next futures contract. More information can be found in ' Examples of financing costs for commodity CFDs and bond CFDs (illustrative purposes only) 'Financing rates for commodity CFDs and bond CFDs are calculated second-by-second.	Financing is calculated by applying an admin fee of 2.5%, which is deducted from the basis rate (for short positions) or added to the basis rate (for long positions). The basis rate is calculated by determining the percentage difference between the near-expiration futures contract and the next futures contract. More information can be found in ' Examples of financing costs for commodity CFDs and bond CFDs (illustrative purposes only) 'Financing rates for commodity CFDs and bond CFDs are calculated second-by-second.

Index	Alternative reference rate
Australia 200	AONIA
China A50	SOFR
China H Shares	HONIA
Germany 30	ESTR
Europe 50	ESTR
France 40	ESTR
Hong Kong 33	HONIA
India 50	SOFR
Japan 225 (USD)	SOFR
Japan 225 (JPY)	TONA
US Nas 100	SOFR
Netherlands 25	ESTR
Singapore 30	SORA
Spain 35	ESTR
Switzerland 20	SARON
US SPX 500	SOFR
Taiwan Index	SOFR
UK 100	SONIA
US Russell 2000	SOFR
US Wall St 30	SOFR

Different asset classes settle on different days.

FX and metal (except copper, platinum and palladium) trades typically settle on a T+2 basis, which effectively means that weekend financing is usually applied two days earlier on Wednesdays (tripling the usual daily value), although this timeline is similarly impacted by public holidays. Indices typically factor in weekend financing on a Friday (tripling the usual daily value), although this timeline is also similarly impacted by Public Holidays.

Accordingly, the actual funding rate on any given day may reflect more than one days costs, as there are no actual financing charges or credit adjustment entries made to your account over the weekend.

Assumptions:

Instrument	Daily long funding rate	Daily short funding rate
EUR/USD	-3.00%	+1.60%

Example 1

Client opens a long 100,000 EUR/USD trade at 8:30am ET Wednesday and closes it at 3:30pm ET Wednesday.

Result: there are no financing costs for this client, as no open position held at 5pm ET end of day.

Example 2

Client is long 130,000 EUR/USD which remains open after 5pm ET Tuesday.

The daily financing cost = 130,000 x -3.00% x 1/365 = -10.68 EUR
      

Result: a financing charge of 10.68 EUR, converted to the client’s account home currency, will be levied on their account. This will be charged every day the position is held beyond 5pm ET (see also Example 3 below for treatment of positions held after Wednesday 5pm ET).

Example 3

Client is short 130,000 EUR/USD trade which remains open after 5pm ET Wednesday.

The daily financing for this position is 130,000 x 1.6% x 1/365 = 5.70 EUR. 

However, as this position is held past 5pm ET Wednesday (see FAQ “How are financing costs affected by settlements in the underlying asset and impact of weekends and public holidays?”), the total credit received is equal to 17.10 EUR (130,000 x (1.6% / 365) x 3).

Result: a financing credit of 17.10 EUR, converted to the client’s account home currency, will be applied to the account.

Assumptions:

Instrument	Long funding rate (annual)	Short funding rate (annual)	Long/buy price (ET 5pm)	Short/sell price (ET 5pm)
US SPX 500	Alternative reference rate + an admin fee of 2.5%. For example: 1.50% + 2.50% = 4.00%	Alternative reference rate – 2.5% admin fee. For example: 4.50% - 2.50% = 2.00%	3040.50	3040.42

Example 1

Client is long 1 unit of US SPX 500 (S&P 500) trade that remains open after 5pm ET Tuesday.

Financing cost = (1 x 3040.50) x (4.00% x 1/365) = 0.33 USD
      

Result: a financing charge of 0.33 USD, converted to the client’s account home currency, will be levied to their account. This will be charged every day the position remains open after 5pm ET (see also Example 2 below for treatment of positions held after Friday 5pm ET).

Example 2

Client is short 10 units of US SPX 500 trade that remains open after 5pm ET Friday.

The daily financing for this position is (10 x 3040.42) x (2.00% x 1/365) = 1.66 USD.

However, as this position is held past 5pm ET Friday (see FAQ “How are financing costs affected by settlements in the underlying asset and impact of weekends and public holidays?”), the total credit received is equal to 5.00 USD ((10 x 3040.42) x (2.00% / 365) x 3).

Result: a financing credit of 5.00 USD, converted to the client’s account home currency, will be applied to their account.

Assumptions:

Instrument	Long funding rate	Short funding rate
Bitcoin CFD	-25% - SOFR. For example, -25% - 0.05% = - 25.05%	-25%+ SOFR. For example, -25% + 0.05% = -24.95%

Example 1

Client is long 10 bitcoin @ $7050 trade that remains open after 5pm ET Tuesday.

Financing cost = 10 x 25.05% x (1 / 365) = 0.0068630137 BTC
      

Result: a financing charge of 0.0068630137 BTC converted to the client’s home currency will be applied. This will be charged every day the position remains open after 5pm ET.

Example 2

Client is short 1 bitcoin @ $7000 trade open at 5pm ET Monday.

Financing cost = 1 x 24.95% x (1 / 365) = 0.0006835616 BTC
      

Result: A financing charge of 0.0006835616 BTC converted to the client’s home currency will be applied. This will be charged every day the position remains open after 5pm ET.

The prices of OANDA’s commodity CFDs (including copper, platinum and palladium) and bond CFDs are based on underlying active futures contracts. When an underlying futures contract is near expiry, OANDA calculates the basis rate, which represents the difference in price between the expiring futures contract and the next futures contract. From that point forward, the OANDA CFD price is calculated as the present value of the price of the next futures contract, using the basis rate for the present value calculation. The present value is calculated continuously, second-by-second.

When the basis rate is positive, the CFD price will tend to move upwards towards the contract price. When the basis rate is negative, the CFD price will tend to move downwards towards the contract price.

Financing cost = position size x funding rate x trade duration (in days) / 365 x conversion rate to account currency
      

Financing charges on commodity CFDs and bond CFDs will be calculated on a continuous second-by-second basis. These charges or credits are applied at the close of a trade. Additionally, if you have an open commodity CFD or bond CFD position on your account at the end of each day (5pm ET), including weekends, it will be subject to either a ‘financing charge’ or ‘financing credit’ to reflect the cost of funding your position (in relation to the margin utilised).

OANDA charges financing on commodity CFDs (including copper, platinum and palladium) and bond CFDs using the basis rate plus an admin fee. The basis rate portion of the financing amount is intended to offset the price movements caused by the present value calculation.

For long positions clients will be debited the basis rate plus a 2.5% admin fee. For short positions, clients will be credited the basis rate minus a 2.5% admin fee.

Asset	Long positions	Short positions
Commodity CFDs and bond CFDs	Basis rate + 2.5% admin fee	Basis rate – 2.5% admin fee

Example 1

The Brent Crude Oil CFD has a basis rate of +5.00%, indicating that the CFD price is likely to move upwards toward the next contract price.

Client has a USD account, and the conversion rate from 1 Brent Crude Oil CFD to USD is 63.00 USD

Client has a 100-unit long position of Brent Crude Oil, which was opened between 3:00am and 3:00pm ET.

Financing amount = position size x funding rate x trade duration (in days) / 365 x conversion rate
      

Position size = 100Funding rate = (5.00% + 2.50%) = 7.50%TradeA trade is the actual execution of buying or selling an asset, resulting in a completed transaction. duration (in days) = 12 hours = 0.5 days

Financing amount = 100 x (5.00% + 2.50%) x ((0.5 / 365) x 63.00) = 0.65 USD
      

Result: a financing debit of 0.65 USD will be applied to the client's account. In this example, the debit offsets the trading profit that results from the price tending upward.

Example 2

The Brent Crude Oil CFD has a basis rate of +5.00%, indicating that the CFD price will tend upwards toward the next contract price.

Client has a USD account, and the conversion rate from 1 Brent Crude Oil CFD to USD is 63.00 USD

Client has a 400-unit short position of Brent Crude Oil, which was opened between 9:00am ET and 3:00pm ET.

Financing amount = position size x funding rate x trade duration (in days) / 365 x conversion rate
      

Position size = 400Funding rate = (5.00% - 2.50%) = 2.50%Trade duration (in days) = 6 hours = 0.25 days
      

Financing amount = 400 x (5.00% - 2.50%) x ((0.25 / 365) x 63.00) = 0.43 USD
      

Result: a financing credit of 0.43 USD will be applied to the client account. In this example, the credit offsets the trading loss that results from the price tending upward.

Example 3

The Natural Gas CFD has a basis rate of -20.00%, indicating that the CFD price will tend downwards toward the next contract price.

Client has a EUR account, and the conversion rate from Natural Gas CFD to EUR is 2.50 EUR.

Client has a 100,000-unit long position of Natural Gas, which was opened between 2:00am ET and 2:00pm ET.

Financing amount = position size x funding rate x trade duration (in days) / 365 x conversion rate
      

Position size = 100,000Funding rate = (-20.00% + 2.50%) = -17.50%Trade duration (in days) = 12 hours = 0.50 days
      

Financing amount = 100,000 x (-20.00% + 2.50%) x ((0.5 / 365) x 2.50) = -59.93 EUR
      

Result: since the resulting amount to be debited is negative, a financing credit of 59.93 EUR will be applied to the client account. In this example, the credit offsets the trading loss that results from the price tending downward.

If you have an open position on your account at the end of each trading day (5pm ET), the position is considered to be held overnight and subject to either a ‘financing charge’ or ‘financing credit’ to reflect the cost of funding your position (in relation to the margin utilised). OANDA’s financing rate is determined by applying an admin fee to the applicable alternative reference rate for each product.

The financing amount is calculated on a per position basis and may be a payable (debit) or a receivable (credit) and is also dependent on whether the position is a buy (long) position or a sell (short) position. More information on this can be found in the FAQ “How doesOANDA Australia calculate funding rates?”

For FX and metal (except copper, platinum and palladium) positions:

Daily financing charge or credit = size of position x applicable funding rate x days/365
   

For index positions:

Daily financing charge or credit = value of position* x applicable funding rate x days/365
   

*where value of position = size of position x price at the end of trading day (5pm ET)
   

For cryptocurrency positions:

Daily financing charge = (position size x funding rate) x 1/365
   

Funding rate for long positions = - 25% - SOFR
   

Funding rate for short positions = - 25% + SOFR
   

Funding rates (sometimes called the "swap rate" for FX products) vary from instrument to instrument and may change on a daily basis.

For long positions, generally you will be charged the financing rate. This is because OANDA’s admin fee is added to the alternative reference rate. For example, assume the alternative reference rate is 2%. Once OANDA’s admin fee is added to that 2% alternative reference rate, the funding rate would be a total of 4.5%. Note that this 4.5% is an annual rate, so to calculate the daily financing rate, you would need to divide it by 365 (as per the calculations above).

For short positions, generally you will receive the financing rate as a credit. However, if the funding rate is negative (alternative reference rate less admin fee results in a negative value), you will be charged that resultant rate. For example, assume the alternative reference rate is 2%. Once the admin fee is applied, the funding rate would be -0.5%. In this case, your position would be subject to a 0.5% charge, divided by 365 (as per the calculations above) to get the daily equivalent rate.

The daily financing charge or credit will be added or deducted to/from your account each day and will be visible in your transaction history accessible via your account portal.